Will My Rate Be 24% Higher If I Start Drawing Benefits At Age 69?

Jan 22 2017 - 8:00am

Hi Larry, My question is I will be 69 in June 2017. I want to wait until age 70, but I'm running out of money. If I apply and request my SS benefit in June 2017, and I receive my first benefit in July will the increase be 24% over my FRA 66?

Hi,

Eventually, yes. However, when you file for benefits between full retirement age and age 70, you are initially only credited with the delayed retirement credits (DRC) accrued through the December prior to your month of entitlement. In your case, if you file effective with June 2017 at age 69, you will initially be credited with 31 months of DRCs (i.e. roughly 20.67%). The other 5 DRCs (i.e. 3.33%) will be credited effective with January 2018, but the actual recalculation won't be done until substantially after that, maybe not until sometime in 2019. Social Security would pay you any back pay due retroactive to January 2018, though.

Best, Jerry